Report: $500B tax bomb set to explode Jan 1, 2013
Lightyear Capital chairman Don Marron reacts
- Duration 3:59
- Date May 4, 2012
Lightyear Capital chairman Don Marron reacts
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You right now I have three dollar tax -- is sticking in his country that -- to worry about it sets of slowed to and is first on all the bush tax raise the payroll tax braced.
He's not small and let's toddlers and the president just something to prevent that from happening and so.
That is why Wall Street legends Don Marron says companies are suggested they are they see the pile of problems that of them.
And I can understand your point on why would you want to.
-- are aggressively go out and open -- new factories and plants in an environment wanna.
Welfare and things are better there's no -- -- better but CEOs are driving the car one foot on the accelerator when for the break.
When you talk about the tax bomb that really is a reflection of a conviction on the part of businesses nothing's gonna happen until the election settled.
-- they're gonna try to settle things in the month after that before the inauguration but no one thinks that's possible.
So it's a bigger pictures -- inability of government to get the act together and do anything that's what you feel and you know it's a dumb question but.
-- -- too many over the years and I know let your capital -- duties there and you know.
-- so many prestigious Wall Street firms over the years PaineWebber.
The outside forces are watching and ever influence your plans to.
Hire people or to expand or to offer new products or new divisions I mean.
The answer is resounding no so unless it is that refutes your whole argued it refutes my argument.
Except that it if there was uncertain in the government that felt to be resolved in a few months you might put something off.
But for example right now the really the biggest issue for business.
Is under appointment.
Not unemployment underemployment to bigger issue in this country millions of people 14% of the population who can't get enough work for what they do.
What you see unemployment when you work stand is you've been through Republican -- democratic presence environments for taxes going down taxes were going up.
And you were investing and strategizing and expanding.
-- -- You do about there's absolutely no doubt about it and I was gonna add that to my comment to know sensible businessman is making decisions based on something in three months in any case.
That didn't stop me at all.
If I thought you -- -- a growth opportunity with a good product we went forward I think to many companies that have that here I don't think that's issuable right now.
If there is an issue for companies as I said they got -- for an accelerated that they have to foot here in the break consortium it isn't right.
-- -- is really as a result of them getting their balance sheets in order stripping needless expenses and all.
Getting lean mean and this say.
And so of the comparisons are going to be tough and as we get quarter recorder you're over here because they've already.
You know -- stuff yeah.
There's no question that every good CEO has trimmed back and all those places he wanted to over the years -- she and couldn't that's absolutely right.
On the other hand demand has continued increase.
That demand increases now they're going to be tried hiring the best people they've learned the best people create a lot of leverage that's -- back to the question -- who who are the best people.
Are they well are they ready for the 21 century.
That's the issue where -- have underemployed people with lots of people out there go to work but they're not 21 century jobs.
In the not too well.
Such stars doing you always hear in your business finance unit they're gone abroad it on the Switzerland or they're going to -- know whether.
But they're not here as well -- There's more money than talent in the world at the moment.
And it's much harder to deal with money and zero interest rate environment so the stars are going to -- -- this capital.
And technology and used to be that maybe going to big firms it doesn't anymore because the capital will follow star wherever they are and you can outsource to technology that's what's happening.
All over the world right now.
You see a bubbling up in multiple industries particularly in technology and finance but a lot of other industries to it's a great time for -- -- -- -- -- -- --